Indian students pursuing degrees in the United States could face a dramatic new financial barrier to post-graduation employment, as the US Department of Homeland Security (DHS) has proposed charging universities $70,000 per student for Optional Practical Training (OPT) authorisation. The proposed rule, published in the Federal Register on 8 October 2026 under document 2026-20660, is not yet in force and is open for public comment until 9 November 2026.

What the Proposed Rule Says

Under the notice of proposed rulemaking issued by US Immigration and Customs Enforcement (ICE), Student and Exchange Visitor Program (SEVP)-certified institutions would be required to pay $70,000 for initial OPT and $30,000 for any subsequent OPT — a figure that applies to the 24-month STEM OPT extension. A student who uses both pre-completion and post-completion OPT could trigger a combined fee of $100,000, according to the Federal Register document. The fee must be paid by the institution before a designated school official recommends a student for OPT.

Crucially, DHS openly acknowledges that universities 'may pass the financial obligation of this proposed fee onto F-1 nonimmigrant students, all students, or employers.' A refund provision exists if the student does not ultimately receive an OPT employment authorisation document.

DHS Rationale and Scale of Impact

DHS argues the fees would 'reduce the rampant fraud and abuse of OPT', protect American workers, and reduce the administrative burden of OPT investigations. The agency also states the charges are designed to discourage students from using OPT 'to market themselves to employers seeking to bypass H-1B caps, fees, and prevailing wage requirements.'

The department's own figures from 2024 show 194,554 OPT participants and 95,384 STEM OPT participants. DHS projects annualised transfers of $12.8 billion as a primary estimate at a 3% discount rate, and 10-year transfers of $109.4 billion.

Why Indian Students Are Most Exposed

Indians are the largest group of international students in the United States, and OPT is the conventional bridge between a US degree and an H-1B work visa. Disruption to this pathway would disproportionately affect Indian graduates, particularly those in non-STEM fields. DHS itself concedes that universities 'may be less likely to pay' the fee for non-STEM courses, where OPT lasts only one year — raising the prospect that institutions selectively withdraw OPT support based on programme type.

This comes amid a broader tightening of US immigration policy: the proposed OPT fee is separate from the $100,000 H-1B fee policy currently in litigation, and a distinct DHS rule ending automatic extensions of work authorisations is also in play. Taken together, the three measures represent a sustained structural squeeze on the F-1-to-H-1B pipeline that Indian students have relied on for over two decades.

What Happens Next

The public comment window closes on 9 November 2026 under docket ICEB-2026-0100 on regulations.gov. DHS is required to review all comments before issuing any final rule, and no implementation date has been set. Universities, student advocacy groups, and industry bodies are expected to file objections before the deadline. Until a final rule is published and takes effect, OPT remains available under existing terms.